Treasury Extends Deadline For Geithner Plan Participation

The Treasury Department announced Monday that it's extending the deadline for investment firms to apply to participate in the Geithner Plan -- the Public-Private Investment Program.

The stated reason for the extension, according to a Treasury statement, is to "better accommodate increased participation." Treasury spokeswoman Stephanie Cutter, however, said the statement should not be read as a signal that Treasury was having difficulty finding participants because the program is not yet "up and running." The Geithner Plan intends to subsidize firms who agree to purchase what it calls "Legacy Assets," also known as toxic assets.

The purpose of the extension, she said, is to broaden participation to more diverse financial-sector players. Responding to pressure from some members of Congress, the plan gives more of an opportunity to veteran, minority- and women-owned firms, but requires they partner with private asset managers.

"I remain concerned that even under the updated guidelines, the burden remains on minority- and women-owned businesses to find willing partners among a select group of very large asset managers who do not have a particular incentive to welcome their assistance," said Maxine Waters (D-Calif.).

The Treasury statement also said that the department "will consider opening the program to Fund Managers that are not selected in the initial pre-qualification process," which would further expand the field of participants.

Institutions now have until April 24th to apply.

Comments

[FrozenNorthObserver]

a "Toxic Legacy" would be a more apt name for it.

[Shieldmaiden]

This is the worst plan ever. Protest this people:

http://anewwayforward.org/demonstrations/

[iridium53]

Their dog ate their homework,huh?

Or, perhaps, the Plan is not as attractive as they hoped?

[RayRyan]

This demand for the extension of access to minority and women financiers, at the behest of Maxine Waters, sounds suspiciously like the demand for the extension of access to home loans, at the behest of Barney Frank, to those who didn't historically qualify because they didn't objectively qualify. At some point, you have to let the chips fall where they may. You can't let the legitimate fights against racism and sexism disqualify sound thinking. These shortcuts to racial and sexist equality are dangerous and short-sighted, and increase racism and sexism rather than alleviate it. If a person qualifies, a person qualifies. Period.

[TheIndependenceParty]

Sad to tell you, but this one may not fly, Tim! In fact, this one makes absolutely no sense, and would make whole lenders who should be allowed to fail, all at the expense of trillions more in American assets.

[Eyeswideopen1]

So where did you get your PhD in Economics?

[Shieldmaiden]

Read Krugman. Do it now! I'll wait...

[FrozenNorthObserver]

doesn't take a PhD, just a little common sense. Oh and I believe it was the PhD endowed that got everyone in this mess. If it takes PhD to figure out that it's not a good idea to let a



all it takes is a little common sense not a PhD. This is no different than the subprime scam where you could put in whatever you felt like for a income or even leave it blank and the bankster would fill it in for you to make sure you qualified. Only on a galatic scale. How'd that PhD thinking work out for you Eyes?








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